CME Group

Page Summary

The Chicago Mercantile Exchange Group is the world’s largest financial derivatives exchange. It is an American company that trades agricultural products, forex, energies, interest rates, metals, stock index funds, and cryptocurrency futures. Users can trade futures contracts and options on futures with their CME Globex trading platform. CME’s BrokerTec offers fixed income trading and their EBS platform offers forex trading. CME Group was the world’s fastest-growing exchange brand in 2019. Trading happens in two ways with the CME Group: through open outcry and through the CME Globex Trading System.

cme-group

Open Outcry

Open outcry trading consists of floor traders standing in a trading pit to trade with each other. Traders wear different colored jackets to indicate which company they are part of. They use hand signals to trade with each other. Although the system looks chaotic, it is an effective trading method. 

GME Globex Trading System

The GME Globex Trading System was the world’s first electronic trading platform for futures contracts that launched in 1992. It is open almost 24/7, accessible in 150 countries and territories, and traders can place orders electronically from their own homes or office. It has processed over one billion transactions so far and 90% of all CME Group’s trading volume happens through the system.

The GME Globex Trading System is connected with other electronic trading platforms like the Dubai Mercantile Exchange and the Singapore Exchange. Over 4,9 million contracts change hands daily on the exchange by non-U.S. traders. Almost every online broker uses CME SPAN software. This software determines the margin requirements traders have to fulfill. 

Globex opens Sunday evening and closes Friday afternoon. During this time users can trade, view orders, and deposit/withdraw funds. To use Globex, traders need a CME Group clearing firm relationship and a CME Group-certified trading application. Between daily trading sessions, there are 30 to 60-minute breaks. 

History of GME Globex Trading System

Plans to launch the GME Globex Trading System go back to 1987. The idea was to provide the ability to trade futures and options in the market after-hours. In 1992 financial news company Reuters supplied real-time price data which made this possible. The GME Globex Trading System started with 3 forex pairs but expanded to thousands of assets in the years to come. Nowadays you can trade all kinds of assets on Globex, including energies, stock indices, real estate, precious metals, and even trade options on the weather. Some financial instruments like certain options and futures are only traded on Globex or subsidiaries of Globex. 

Disclaimer

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